We have not been paid for 05/26 through 06/30 as the company filed for bankruptcy?

UPDATED: Sep 30, 2022

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We have not been paid for 05/26 through 06/30 as the company filed for bankruptcy?

Our company filed for bankruptcy. They asked that our side of the business continue to work so they could sell our portion. We stayed and we worked. They were able to sell our side and the purchasing company kept us on. We are all still owed for May 26th through June 30th. What can we do?

Asked on August 1, 2017 under Employment Labor Law, Indiana


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

You can present a legal claim against your employer--the one who had been the owner at the time you did the work--for the money. Howevever, if as indicated, they filed bankruptcy, you might have a great deal of difficulty in being paid: while wage claims have "priority" in bankruptcy cases (e.g. they get paid ahead of, say, claims by a plumber or electrician or contractor who did work, or claims by a someone who supplied inventory or software), they still will only be paid if there is money to pay them. If the company filed bankruptcy, cash is clearly an issue: there might not be money to pay the wages, or possibly only enough to pay them in part. Furthermore, you will have to wait through the bankruptcy process to be paid.
If they have indeed filed bankruptcy, you will present/file your claim with the bankruptcy court, using the docket or index number assigned to this bankruptcy, as a claim to be adjudicated in the bankruptcy. Contact the bankruptcy court for instructions.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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